(Yicai Global) Dec. 6 -- China’s mobility services market is expected to reach USD55 billion by 2030 thanks to more digitized and shared services such as ride-hailing, car-as-a-service, and electric vertical take-off and landing aircraft, according to a recent research report. 

Ride-hailing, taxis, and car-as-a-service models will account for about 90 percent of China’s mobility service market by 2030, the findings of a report by international management consultants Oliver Wyman Forum showed. The Chinese market will be bigger than those of Singapore and India combined.

The country’s ride-hailing market will likely exceed USD37 billion by 2030, accounting for a 16 percent share of the Asian market.

In the most populous regions, people turn to ride-hailing and taxis, as it is difficult and expensive to own a car in crowded cities. Moreover, fares are cheaper in China than in other countries like those in the European Union. Caps on prices and subsidies to attract drivers will further strengthen the world’s largest ride-hailing market, the report noted.

Some companies have also begun offering robotaxi services in China.

China’s car-as-a-service market is expected to grow to almost USD8 billion in 2030 from USD2.4 billion in 2020 because of the increased demand for mobility.

The car-sharing market will grow to USD1.5 billion from USD420 million in the period, as it is not as saturated as in North America and the EU. But its growth will be hindered as robotaxis take a larger market share. 

While the rise of digital and shared mobility services offers more affordable and convenient means of travel, an urban mobility network combining a mass transit system with ride-hailing or car hiring is needed to create more efficient and sustainable ways to get about. 

The eVTOL aircraft market is expected to reach USD2.6 billion by 2030, as Asia’s increased urbanization, congestion, and growing disposable income are creating a strong business case for intra- and inner-city air travel, said Andreas Nienhaus, a partner at Oliver Wyman, and Zhang Junyi, a partner of the firm’s Shanghai office and head of its China auto branch. 

Mobility players are preparing to take off, as the Chinese government proposed to accelerate the strategic development of urban air mobility in 2020. Some firms have already unveiled passenger-carrying flying vehicles and will conduct tests through next year. Others aim to deploy eVTOL aircraft in Chinese cities in the next five years. 

Editor: Futura Costaglione